Chapter 16:Culture and Diversity in Business

Introduction to BusinessUnit 5: Human Resources

DIVERSITY IN THE WORKPLACESection 16.2

Cultural Diversity

• Companies tend to thrive when they have diversity, a variety of employees with different backgrounds and identities.– Age– Gender– Ethnicity– Individual needs– Education– Marital status– Income– Religious beliefs

• Diversity in the workplace means differences in skills, work habits, and approaches to tasks.

Working with Diversity

• A major problem in diverse workplaces is stereotyping– Identifying someone by a single trait or as a member of a certain

group rather than as an individual– Denies other aspects of a person’s identity– Makes assumptions based on prejudice, not evidence– May lead to unfair treatment of employees, tension in the workplace,

and/or decreased productivity

• Your success on the job will depend on how well you work with and for people who are different from you.

Consider This . . .

• Find a partner and create a Venn diagram showing at least five ways you are similar and five ways you are different.

• Then, discuss whether you have engaged in or experienced stereotyping.

• Be ready to share out.

Student 1 Student 2

Impact of Diversity on Business

• The US population is becoming more ethnically diverse.– As population grows, percentages of people with African,

Asian, and Hispanic/Latino heritage also grow.– Fastest growing groups in the country are people of

Hispanic and Asian origin.

• Population is also living longer more workers aged 65 and over are working past retirement age.

• The growth of women in the labor force is expected to rise at a slightly faster rate than for men.

Effects of Population Trends

Changes in the Workplace• As population becomes

more divers, so does the workplace.

• More emphasis on being open-minded and being a team player.

• Greater potential for– Disagreements (-)– New ideas/solutions (+)

• More insight into new consumer groups

Changes in the Marketplace• Marketplace = consumers of

goods and services• Companies now target several

market segments• Opportunity for niche

marketers• Baby boom generation:

– 76 million babies born between 1946 and 1964

– Now reaching retirement age and developing specific needs

– Greater spending power than other age groups

NACP Alert!

Managing Diversity

• Human resource managers oversee diversity; try to make the company inclusive by hiring people of different characteristics, backgrounds, and ethnicities.

• Increased diversity more realistic worldview competitive advantage

• Employee diversity is an asset in dealing with clients and customers from different cultures.

• Common corporate culture helps bind diverse viewpoints together toward common goals.

Laws Against Discrimination• Discrimination: unfair treatment of a person or group, usually

because of prejudiced attitudes about race, ethnicity, age, religion, or gender.

• Age Discrimination Employment Act: – prohibits discrimination against workers because of their age (ageism)– Ex. In the past, workers over the age of 40 were often fired or denied jobs in

favor of younger workers (work for lower salary, less likely to have families, more tractable)

• Equal Employment Opportunity Act: strengthens laws that protect workers from discrimination based on race, ethnicity, religion, or gender.

• Americans with Disabilities Act (1990):– Prohibits discrimination against qualified people who have disabilities– Employers must make reasonable accommodation for a qualified person with

a disability

Diversity Programs

• Most codes of ethics have rules against discrimination.• Personnel problems may still exist if some employees still

have trouble working with people who are different from them.

• Companies may offer diversity training programs to promote tolerance among workers by breaking down stereotypes.

• Managers must– Avoid stereotyping– Create a work environment where prejudice is not tolerated– Promote a culture that values, welcomes, and respects diversity

Benefits of Diversity• Broader range of ideas and points of view• Better understanding of and ability to serve diverse markets• Improved morale among employees and greater commitment

to company goals• Valuing diversity leads to

– Increased productivity and efficiency– Lower turnover rates– Less absenteeism– Fewer legal costs from employee complaints– Reduced conflicts among workers (diversity training)

Consider ThisIn many companies, diversity training is in place to break down stereotypes. What do you think the impact of diversity training in companies will have on society as a whole?